NakedPnL Research
Methodology & verification guides
Technical guides on how NakedPnL computes time-weighted returns, builds the SHA-256 hash chain, and anchors daily Merkle roots to Bitcoin via OpenTimestamps — written so anyone can independently re-verify a track record.
Methodology
How Time-Weighted Return (TWR) Works — A Step-by-Step Guide
Time-weighted return isolates manager skill from cash-flow timing by chain-linking sub-period returns. A precise, worked walkthrough with code.
12 min read·twr · performance-measurement · cash-flow
TWR vs IRR vs CAGR — Which Performance Metric Tells the Truth?
TWR, IRR, and CAGR can show very different numbers for the same account. Here is what each measures, when to use it, and why TWR wins for managers.
13 min read·twr · irr · cagr
Why Floating-Point Math Is Wrong for Investment Returns
IEEE 754 floats silently lose precision. For TWR over thousands of daily returns, the error compounds. Here is the bug, the math, and the fix.
12 min read·decimal · floating-point · ieee-754
Survivorship Bias in Public Trader Rankings — How to Spot It
Public trader rankings systematically over-state performance because losers quietly disappear. Here is the math, the evidence, and the fix.
13 min read·survivorship-bias · performance-measurement · registry-integrity
Verification Depth — How Long a Track Record Has to Be to Mean Something
30 days of trading is statistical noise. Here is the math behind sample-size requirements and how NakedPnL's Bronze, Silver, and Gold tiers are calibrated.
13 min read·verification-depth · statistical-significance · sample-size
How API Key Rotation Affects a Verified Track Record
What happens to a NakedPnL hash chain when a trader rotates or revokes their read-only API key, with worked examples of credential fingerprints and chain continuity.
14 min read·api-keys · credentials · security
Why Monthly NAV Reporting Isn’t Enough for Verification
Hedge funds publish monthly NAV. NakedPnL publishes daily. This guide shows why monthly granularity hides intra-month drawdowns and breaks Sharpe-ratio comparability.
15 min read·methodology · twr · sharpe-ratio
Cash Flow Detection in NAV-Only Data — How NakedPnL Handles Deposits and Withdrawals
Most exchange APIs report NAV but not cash flow history at usable granularity. This guide walks through how NakedPnL detects deposits and withdrawals and why the trade-offs matter.
15 min read·cash-flow · twr · deposits
Verification
How a SHA-256 Hash Chain Detects Tampering: A Visual Walkthrough
A precise, code-driven walkthrough of how SHA-256 hash chains expose insertion, deletion, and reorder attacks on append-only investment performance records.
13 min read·sha-256 · hash-chain · cryptography
How NakedPnL Anchors Performance Data to Bitcoin via OpenTimestamps
A technical explainer of how OpenTimestamps batches NakedPnL's daily Merkle root into a Bitcoin transaction, and how anyone can independently verify the proof.
14 min read·opentimestamps · bitcoin · timestamping
Merkle Trees in Investment Data: Why One Hash Verifies Thousands
How Merkle trees compress thousands of investment performance records into a single 32-byte root, and why deterministic ordering is the part everyone gets wrong.
13 min read·merkle-tree · data-structures · verification
How to Independently Verify a Public Trader Track Record
A 10-minute, code-driven workflow for an allocator, journalist, or regulator to re-verify a NakedPnL trader chain end-to-end using only public data.
14 min read·due-diligence · verification · trader-track-record
Why Canonical JSON Matters for Cryptographic Hashing of API Responses
Two semantically identical JSON documents can produce different SHA-256 digests. RFC 8785 (JCS) is the discipline that closes the gap — and the reason NakedPnL chains hold up.
12 min read·canonical-json · rfc-8785 · jcs
How to Verify a NakedPnL Trader Track Record in 10 Minutes
A step-by-step tutorial for independently verifying any NakedPnL track record using SHA-256 hash chains, Bitcoin OpenTimestamps, and exchange API responses.
16 min read·verification · hash-chain · tutorial
From Exchange API to Public Registry — The NakedPnL Data Pipeline
Walkthrough of the daily snapshot pipeline: cron schedule, venue adapters, canonicalization, hash chain writes, and Bitcoin anchoring via OpenTimestamps.
17 min read·data-pipeline · cron · hash-chain